Equity and fixed income markets ran with any and all signs that the Fed is executing an immaculate soft landing. The market’s expectations for rate cuts in 2024 exceeded the Fed’s own expectations as investors sought to front-run the news of a complete end to the war on inflation without any real damage to the economy. Softening energy markets, trouble in China, and an expanding US government deficit did not ignite broader concerns. Risk-on sentiment was rewarded for the month and the year.